The Victorian government has introduced a major property reform package to Parliament, launching reforms for apartment and townhouse owners, and renters.
With one in five Victorians now living in strata-managed townhouses or apartments, the government has moved to implement the first tranche of changes stemming from an independent review of the Owners Corporations Act 2006. The review made 51 recommendations and the government supports 17 in full.
Under the new laws, residents struggling to pay body corporate fees will gain a standard legal right to a hardship payment plan to shield them from aggressive debt collection.
The legislation also removes historic bureaucratic stalemates within strata communities. Amendments to the Subdivision Act 1988 mean a single owner can no longer block popular structural changes that require altering subdivision plans.
Furthermore, owners corporations will now only require a 50 per cent majority vote to launch legal proceedings over non-monetary disputes in VCAT or the Magistrates’ Court.
Consumer Affairs and Renters Minister Paul Edbrooke warned that rogue body corporate operators were firmly in the government’s sights, foreshadowing a new licensing scheme and an enforcement crackdown on illegal kickbacks next year.
“No one should be hounded over fees they simply can’t afford – so we’re putting a stop to it,” Edbrooke said.
“One in five Victorians call a strata property home – they deserve a fair go and that’s exactly what they’ll get under Labor.”
The legislative package also introduces an Australian-first real estate mandate to combat underquoting.
From October 1, real estate agents will be legally required to publicly declare a property’s reserve price at least seven days before an auction or sale. Failing to do so will ban the property from proceeding to auction, and all final sale prices must be made public.
For the state’s growing rental population, the reforms introduce a strict cap on lease-breaking fees, limiting them to a maximum of four weeks’ rent.
The laws also guarantee renters the right to additional sets of keys or electronic fobs, and introduce a streamlined option to lodge rental bonds directly with the Residential Tenancies Bond Authority online.
“We’re stamping out underquoting. These new laws mean no more wasting your Saturday at auctions trying to buy a home that you could never afford,” Edbrooke said.
“No one should be trapped in a lease they can’t afford to leave – so we’re capping the cost of getting out.
“If you’re paying rent, you’re entitled to your own set of keys – it’s that simple.”
